Page "History of Washington, D.C." Paragraph 13
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James Madison, writing in Federalist No. 43, also argued that the national capital needed to be distinct from the states, in order to provide for its own maintenance and safety.
Proposals from the legislatures of Maryland, New Jersey, New York, and Virginia all offered territory for the location of the national capital.
Northern states preferred a capital located in one of the nation's prominent cities, unsurprisingly, almost all of which were in the north.
Conversely, Southern states preferred that the capital be located closer to their agricultural and slave-holding interests.
The selection of the area around the Potomac River, which was the boundary between Maryland and Virginia, both slave states, was agreed upon between James Madison, Thomas Jefferson, and Alexander Hamilton.
Hamilton had a proposal for the new federal government to take over debts accrued by the states during the Revolutionary War.
Jefferson and Madison agreed to this proposal and in return secured a Southern location for the federal capital.
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